Texas Court of Appeals Finds Property Tax Lender Subrogated to Tax Lien Rights, Can Foreclose

The Texas Court of Appeals reversed the trial court’s take nothing judgment and rendered judgment declaring that the tax liens on the property were enforceable and superior to any other interest. The plaintiff sought to foreclose on six tax liens securing a consolidated tax loan, recover amounts due on the loan, and a declaration that its tax liens were superior to a subsequent purchaser. The Court of Appeals found that: 1) the consolidated tax loan did not create a new lien nor advance excess funds; 2) the plaintiff was entitled to enforce the tax liens through equitable subrogation; and 3) ...